Home >  Blossary: Forex Jargon  >  Term: Hara-kiri Swap
Hara-kiri Swap

Hara-kiri is actually derived from Japanese word which means "suicide".And this currency swap, it is actually offer no profit to the offering party. The originator or the offering party actually offers really low interest rate or exchange rate, it is so low that it is impossible for the offering party to make a profit.

However, hara-kiri swaps are advantageous only if they build a client base or if they allow one to enter a profiting position that one could not have entered previously.

The term gets its name from Japanese banks' and securities houses' 1980s strategy of offerings very low rates in order to obtain business.

0 0
  • Part of Speech: proper noun
  • Industry/Domain: Economy
  • Category: Forex

Forex Jargon

Category: Business

Total terms: 20

Creator

  • dnatalia
  •  (Silver) 543 points
  • 100% positive feedback
© 2024 CSOFT International, Ltd.